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In the last 14 days, wallets with between 1,000,000 and 10,000,000 XRP have reduced their holdings by around 200,000,000 tokens. This change, displayed by Santiment data, suggests that some of these holders are leaving the mid-level group, reducing their combined holdings to around 6.74 billion XRP.
They are not small retail accounts, but they also do not match the scale of the very largest XRP players.
Such movements usually matter because of the amount of supply in control, which can influence short-term trends. Of late, these whales have clearly been reducing their holdings.
The XRP price has been trending down while XRP has been levitating close to $3, bouncing between $2.90 and $3.30, without going in a clear direction.
The fact that these wallets are selling could be one of the reasons why the token has struggled to increase in value, even though the general crypto market has had a mix of positive and negative days.
Why do XRP whales sell?
One possibility is that these holders are simply taking profit after XRP's climb earlier in the summer.
Another reason is caution: with the Federal Reserve's interest rate decision coming up and money availability across markets looking uncertain, some investors may prefer to derisk their exposure now instead of holding amid price chaos.
It is important to know that not all of these tokens have been moved to cold storage.
The number of XRP going into exchanges has gone up, which suggests that some of the 200 million XRP has been sent to trading platforms. This means that some of the selling pressure could be transferred to the open market if those tokens are moved directly there.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team